engleski

The Role of Financial Intermediaries in Economies of Croatia and Slovenia

The main issues discussed in this paper are, firstly, the substance of activities performed by financial intermediaries in Slovenian and Croatian economy and, secondly, their potential role in the future. Although technical aspects of financial intermediaries´ efficiency are not neglected (profit and costs), research is mainly focused on the estimates of their economic (allocative) efficiency. Bank oriented financial systems in Croatia and Slovenia have evidently improved their efficiency. However, even in the contents of traditional financial intermediation there is space for improvement. Therefore, in order to avoid over-rationizing of company loans, it is necessary to establish data bases and adopt sophisticated methods which are decisive for profitability estimates of investment projects, solvency and selection of debtors. It is also essential to increase the offer of products and services in the area of corporate banking. The results achieved by institutional investors, though encouraging, are still not enough for financial systems to move towards market orientation. A whole range of other conditions will have to be fulfilled to be able to use the advantages, among others, from the participation on the, soon to be united, capital markets of the EU.

financial intermediaries; products and markets; efficiency; Croatia and Slovenia

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